Question 4

Lucy, Ryan and Zach are shareholders in Tower Hamlets Ltd. Lucy is a director and Sue is

also a director. The company employs three members of staff. The articles of association set

out details of the management structure. The directors Lucy and Sue wish to make some

changes which are currently prohibited by the articles.

Can this be done and if so how?

A)

Lucy and Sue can make the changes as they are directors.

B)

Lucy, Ryan and Zach can make the changes as long as they all agree.

C)

The articles would need to be amended and this could be done by a vote in favour of the

resolution by 75% of the shareholders' votes

.

D)

The articles would need to be amended and this could be done by a vote by the simple

majority of shareholders.